How Much Does a Trustee Get Paid?

Yes, trustee compensation is taxable income to the trustee. The trust can deduct the payment as an administrative expense. Some family trustees choose to waive compensation to avoid income tax, especially if they're also beneficiaries who would receive the funds tax-free as distributions.

Yes, family members serving as trustees are entitled to the same "reasonable compensation" as professional trustees. However, many family trustees choose to waive or reduce their fee, particularly if they're also beneficiaries. Family trustees who accept payment typically maintain detailed records of their time and duties.

Executor fees compensate for settling an estate through probate - typically a one-time process lasting several months. Trustee fees compensate for ongoing trust administration, which may continue for years or decades. If a trust simply distributes everything to adult beneficiaries, the trustee's work is similar to an executor's (one-time). If the trust continues (for minors, a surviving spouse, or special needs), annual fees are typical. Use our Executor Fee Calculator to estimate executor compensation in your state.

Many trust documents specify trustee compensation. Common provisions include a specific percentage, reference to "reasonable compensation," or a waiver of fees for family trustees. The trust document governs first — its terms may override general compensation guidelines. If the document is silent, state law typically allows "reasonable" compensation.

Trustees typically support their fee with detailed records of time spent on trust duties: investment management, tax filings, beneficiary communications, bill payments, and distributions. Documentation of the trust's complexity and any special skills the trustee brings also supports the fee. If beneficiaries question the fee, these records help demonstrate that compensation is reasonable for the work performed.

Yes. A revocable trust document sets trustee compensation terms — flat rate, percentage, complete waiver for family trustees, or standard "reasonable compensation." Many families name adult children as successor trustees and waive fees, since they also receive distributions. A revocable trust created through SimplyTrust includes these trustee provisions.